SAO PAULO, Nov 4 (Reuters) - Third-quarter earnings at Cielo SA beat analysts’ expectations after Brazil’s largest card payment processor saw transaction volumes surge and strict expense controls helped offset a jump in debt-servicing costs.
The Barueri, Brazil-based company posted net income of 691.2 million reais ($309 million) in the quarter, according to a securities filing on Monday. That was above net income of 674 million reais expected in a Thomson Reuters poll of six analysts.
Compared with the second quarter, profit rose 10.9 percent, while it rose over 17 percent from a year earlier. Management will discuss earnings with investors at a conference call on Tuesday.
Cielo carried out 113.2 billion reais worth of transactions in the quarter, driving net revenue 8.4 percent higher to 1.74 billion reais. The poll expected revenue of 1.77 billion reais - the miss likely happened because proceeds from Cielo’s U.S. unit came in lower than expected after the real, Brazil’s currency, strengthened against the U.S. dollar.
Sales, general and administrative expenses rose 6.2 percent from the prior quarter, while financial expenses such as debt-servicing costs jumped 16.3 percent.
Earnings before interest, tax, depreciation and amortization, a gauge of operational performance known as EBITDA, totaled 929.7 million reais in the quarter. The poll expected 959 million reais in EBITDA.